patrick.net

Prices going down????? -- Nothing a few more millions of illegals can't cure.

Rubicon says

Where is this?

Florida panhandle about 2 miles from beach

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Rubicon says

Hey ad,

“ Right now our townhome could sell for around $300,000 and rent for $2,200.”

Where is this?

Omaha suburb (Papillion) in a nice area:

Like Nebraska is full of ballers that can sling around a $2500 rent every month.. Just where do these investor morons, think people in rural areas come up with high rents? A house like that in fly over America has no business being over $120K period.

Tenpoundbass says

Like Nebraska is full of ballers that can sling around a $2500 rent every month.

Omaha suburbs are not like the rest of Nebraska. In the small rural towns, there are plenty of homes in the $100k price range or even less. Also, Nebraska has very high property taxes, on that $348k home, the monthly property tax will be about $400.

HeadSet says

Tenpoundbass says

Like Nebraska is full of ballers that can sling around a $2500 rent every month.

Omaha suburbs are not like the rest of Nebraska. In the small rural towns, there are plenty of homes in the $100k price range or even less. Also, Nebraska has very high property taxes, on that $348k home, the monthly property tax will be about $400.

That's 1.3%, same as "low" California tax. =))

RWSGFY says

That's 1.3%, same as "low" California tax. =))

Isn't that on "assessed" value? In most places, assessed value if far below asking prices. Omaha has about 2.6% of the assessed value.

RWSGFY says

Inflation is on a downward slope already.

Actually, any inflationary number that they admit to is compounding the previous inflation. If inflation was really improving, you would see a decrease, not an increase in the rate of inflation.

RayAmerica says

Actually, any inflationary number that they admit to is compounding the previous inflation. If inflation was really improving, you would see a decrease, not an increase in the rate of inflation.

Month to month and quarter to quarter needs to be compared now, more so than annual change in inflation. It will take at least 2 years to figure out if inflation will steady between 2% and 3%.

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RayAmerica says

f inflation was really improving, you would see a decrease, not an increase in the rate of inflation.

Where do we see the increase in the rate of inflation?

Eric Holder says

Where do we see the increase in the rate of inflation?

Trend has been downward, but we did just see an uptick in July.

The Consumer Price Index, a closely watched inflation gauge, rose 3.2% in July from a year earlier, up from June’s 3% annual rise and the first time the CPI picked up in more than a year.

Intersestingly
Research from Federal Reserve Bank of San Francisco argues that shelter inflation is poised to fall significantly, reaching 0% in 2024 then turning negative by the second half of the year. Shelter costs made up 90% of inflation in July.

EBGuy says

Intersestingly
Research from Federal Reserve Bank of San Francisco argues that shelter inflation is poised to fall significantly, reaching 0% in 2024 then turning negative by the second half of the year. Shelter costs made up 90% of inflation in July.

I think any down turn is going to be regional. Mainly people leaving. IL seems to have leveled since our exodus. But there's not inventory, BUT people need to work. Builders are adjusting their quotes down now. BUT, overall housing prices are staying the same since inventory isn't increasing because people stopped moving out.

I think east of the Rockies to just east of the Mississippi will be fine. I think some other areas that were hipster and booming or having an exodus might eat some shit over the next two years. I don't think it's going to be national like it was last time where if you owned and needed to sell you took a bath and foreclosed, short sold or came to closing with cash to unload the house.

Fun fact: Snowflake which moved their HQ from San Mateo to Bozeman back in 2021 has recently got into contract to lease a huge chunk of office space in Bay Area.

ad says

Right now our townhome could sell for around $300,000 and rent for $2,200.

(2200 * 12) / 300000 = .088

That's a fine cap rate, and a good deal for the owner.

Let it never be said that I always recommend against buying.

Eric Holder says

Where do we see the increase in the rate of inflation?

Stores, hotels, restaurants, almost everywhere. It's hard to buy a sandwich for less than $10 that used to cost $5.

I know what you meant.

Onvacation says

Eric Holder says

Where do we see the increase in the rate of inflation?

Stores, hotels, restaurants, almost everywhere. It's hard to buy a sandwich for less than $10 that used to cost $5.

Eh, this is feelz, not data.

Rubicon says

As a millennial I don’t remember getting a good sandwich for $5. Was that 30years ago?

20 years ago, you could get a decent grinder (sub, hoagie) for $5.

richwicks says

20 years ago, you could get a decent grinder (sub, hoagie) for $5.

Yep, it was as late as 2008 that Subway started that $5 footlong deal.

HeadSet says

richwicks says

20 years ago, you could get a decent grinder (sub, hoagie) for $5.

Yep, it was as late as 2008 that Subway started that $5 footlong deal.

And Costco hot dog combo is still $1.50 as it was in the 80s. Shall we accept this anekdote as proof that inflation does not exist? Of course not.

RWSGFY says

And Costco hot dog combo is still $1.50 as it was in the 80s.

Well pig lips and assholes aren't very expensive.

RWSGFY says

Onvacation says

Eric Holder says

Where do we see the increase in the rate of inflation?

Stores, hotels, restaurants, almost everywhere. It's hard to buy a sandwich for less than $10 that used to cost $5.

Eh, this is feelz, not data.

Not “feelz” it is real. Hamburger at the arches fast food was less than a dollar not so long ago. Now it is $3.20 for the same shit sandwich. Salaries in the meantime at best have double while the cost of food has more than tripled.

PeopleUnited says

RWSGFY says

Onvacation says

Eric Holder says

Where do we see the increase in the rate of inflation?

Stores, hotels, restaurants, almost everywhere. It's hard to buy a sandwich for less than $10 that used to cost $5.

Eh, this is feelz, not data.

Not “feelz” it is real. Hamburger at the arches fast food was less than a dollar not so long ago. Now it is $3.20 for the same shit sandwich. Salaries in the meantime at best have double while the cost of food has more than tripled.

Everybody knows shit got more expensive over the years, duh. But this is not what the question was. The question was about the increase of the rate of inflation in the recent months. This is not what can be measured accurately by buying sandwiches now and then.

Fine, just buy the raw meat. Sale prices used to dip as low as $2.48 a pound for hamburger. Now $5 a pound is a relatively good deal.

If you don’t see that your grocery bill has gone up in the past few months you probably are not paying attention.

Aside from monetary inflation to support the war, the biggest driver of inflation lately is the increase in the cost of energy, which Brandon is also responsible for.

How far/fast has inflation outpaced incomes? If it continues, it's just a matter of time before almost everyone goes bust.

And btw, how come 10s of millions haven't declared bankruptcy seeing that so many can't come up with $400 in an emergency. Monthly living expenses have gone up around $700/month.

GNL says

And btw, how come 10s of millions haven't declared bankruptcy seeing that so many can't come up with $400 in an emergency. Monthly living expenses have gone up around $700/month.

Can't afford the lawyer?

pudil says

To me it doesn’t feel like 2008 at all. Prices have gone up but so have rents and building costs.

I was on this site in the run up to 2008. Patrick had a very simple premise, rents and sale prices were out of wack. And he was right.

I don’t see that pattern in 2023. Prices are high but so are rents and so are prices to build new. If anything, we’re about to see a commercial real estate collapse, but I don’t think that will effect residential negatively.

+1000

PeopleUnited says

Fine, just buy the raw meat. Sale prices used to dip as low as $2.48 a pound for hamburger. Now $5 a pound is a relatively good deal.

If you don’t see that your grocery bill has gone up in the past few months you probably are not paying attention.

Again, you are answering wrong question and again with feelz. If you insist on picking just one thing - meat - what was the increase of price of meat in %% from May to June, June to July, July to Aug? Did these %% increase, decrease, go up then down, go down then up and by how much?

PS. My local Lucky constantly has sales on tri-tip at $3.97 pp. Does it prove anything? Of course not.

There is no inventory. People with houses at 3% mortgage won't sell. Now with higher rents, they are making killing. Also low unemployment, so people can pay.

People without houses will suffer.
With higher rates market should crash but it isn't.

PeopleUnited says

Fine, just buy the raw meat. Sale prices used to dip as low as $2.48 a pound for hamburger. Now $5 a pound is a relatively good deal.

If you don’t see that your grocery bill has gone up in the past few months you probably are not paying attention.

I've been buying grass fed ground beef from local farmers for 15 years. When we started, it was $7.50/lb. Now it's $9.60/lb. What I take away from this is that real (non-industrial) food costs more, but because of the way it's sustainably nourished and grown, as well as the fact that local farmers are not monopolies and can't arbitrarily raise prices without losing a big part of their clientele, the pricing mechanism is less chaotic.

stereotomy says

I've been buying grass fed ground beef from local farmers for 15 years. When we started, it was $7.50/lb. Now it's $9.60/lb.

I'd you do it right, that's not really that expensive. Americans eat a lot of meat.

RWSGFY says

PeopleUnited says

Fine, just buy the raw meat. Sale prices used to dip as low as $2.48 a pound for hamburger. Now $5 a pound is a relatively good deal.

If you don’t see that your grocery bill has gone up in the past few months you probably are not paying attention.

Again, you are answering wrong question and again with feelz. If you insist on picking just one thing - meat - what was the increase of price of meat in %% from May to June, June to July, July to Aug? Did these %% increase, decrease, go up then down, go down then up and by how much?

PS. My local Lucky constantly has sales on tri-tip at $3.97 pp. Does it prove anything? Of course not.

Look, it’s not feelz it’s fact. And its not just meat. Mayonnaise, lettuce, baked goods, corn chips. They are all up. Bury your head in the zelenskis ass if you must, but those of us paying attention to the aggregate grocery bill and energy costs see that prices are rising as a whole. This can be calculated on a monthly basis using more data points (not feelz, facts).

PeopleUnited says

Look, it’s not feelz it’s fact. And its not just meat. Mayonnaise, lettuce, baked goods, corn chips. They are all up. Bury your head in the zelenskis ass

Dude, this is so idiotic, it hurts. You didn't understand the question and when called out your last straw is zelensky's ass? Stay classy.

US Existing Home Sales Weakest July Since 2010

Existing home sales were expected to decline very modestly in July (-0.2% MoM) - after June's drop (the biggest since Nov '22). However, existing home sales tumbled more than expected (down 2.2% MoM), leaving sales down 16.6% YoY...

https://www.zerohedge.com/personal-finance/us-existing-home-sales-weakest-july-2010

The question was about the “rate of inflation”.

Which can only be measured comparing one period of time to another across a broad range of consumer prices.

https://www.bls.gov/opub/ted/2023/consumer-prices-up-3-2-percent-from-july-2022-to-july-2023.htm

But the data is clear. Prices continue to rise.

PeopleUnited says

https://www.bls.gov/opub/ted/2023/consumer-prices-up-3-2-percent-from-july-2022-to-july-2023.htm

But the data is clear. Prices continue to rise.

We are going to have to see by end of 2025 if annual inflation has steadied at no more than 3%. There was so much disruption and volatility with fiscal and monetary actions that it was going to cause this much of an economic stir from 2021 to 2025.

Biden should never have spent as much stimulus money ($2.4 trillion, compared to Trump's $2.3 trillion) and the Fed should have started to raised rates by late 2021. The economy was not at risk when Birdbrain Biden took over, so there was no reason for Birdbrain to spend that much.

The question is if median income and wage increases are keeping up with inflation. For my household, we invest some of our money in stocks as a way to keep up with inflation.

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Big_Johnson says

People without houses will suffer.
With higher rates market should crash but it isn't.

Yes, as there is no pressure to sell at a +20% decrease in the value or sales price of the house when peak prices were realized around early 2022.

There is still not enough supply to create a war between sellers, unlike the glut back in 2008-2011.

Look at the housing starts chart and you'll see why as there was not enough homes built after housing starts bottomed.

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ad says

The question is if median income and wage increases are keeping up with inflation.

Are you seriously wondering if wages are keeping up with inflation?

GNL says

ad says

The question is if median income and wage increases are keeping up with inflation.

Are you seriously wondering if wages are keeping up with inflation?

No need to wonder. The answer is NO for the majority. Yes for the lucky few.